Trust Board papers November 2012 - Barking Havering and ...
Trust Board papers November 2012 - Barking Havering and ...
Trust Board papers November 2012 - Barking Havering and ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
EXECUTIVE SUMMARY<br />
TITLE:<br />
Finance Report – Month Six (September)<br />
<strong>2012</strong>/13<br />
BOARD/GROUP/COMMITTEE:<br />
<strong>Trust</strong> <strong>Board</strong><br />
1. KEY ISSUES: REVIEWED BY (BOARD/COMMITTEE) <strong>and</strong><br />
DATE:<br />
• In the six month period to the end of September the<br />
trust recorded a year to date deficit of £26.0m<br />
(adjusted for impairments & IFRS reversals), which is<br />
£2.0m worse than plan for the period. This adverse<br />
variance is primarily explained by a £2.2m shortfall<br />
against the CIP target to date.<br />
• The in-month deficit of (£3.5m) was in line with plan.<br />
This represents an improvement on the average monthly<br />
run rate deficit to Month 5 of £4.5m <strong>and</strong> the deficit in<br />
Month 5 of £5.5m.<br />
• The income position to date is £2.1m ahead of plan.<br />
Some payment for over-performance with ONEL has<br />
now been agreed <strong>and</strong> £2.7m of this additional income is<br />
reflected in the year to date income position. Underperformance<br />
on non-ONEL SLAs (primarily Essex) has<br />
reduced income during the period by £0.4m.<br />
• The projected income position at the year-end is for<br />
an over-performance of £19.6m on the ONEL contract,<br />
less £0.9m under-performance for non-ONEL. This<br />
represents a significant risk as the commissioners have<br />
not yet agreed to fund £5.0m of these treatments.<br />
• Aside from the CIP shortfall, the expenditure position<br />
shows a £1.7m overspending year to date. This<br />
overspending is largely associated with the activity overperformance.<br />
An appropriate proportion of the income<br />
over-performance is being devolved to business units, to<br />
mitigate the marginal cost of over-performance.<br />
• The CIP position shows year to date delivery of £4.3m<br />
against a target for the period of £6.5m, a shortfall of<br />
£2.2m. The forecast delivery is £17.7m of which<br />
£4.8m is considered to be at high risk, which is an<br />
improvement on the £6.2m of high risk schemes<br />
reported last month. The <strong>Trust</strong> aims to have plans in<br />
place by the end of the month to deliver all of the £17.7m<br />
forecast.<br />
• This compares to a CIP target of £23.1m for the year.<br />
The PMO/E&Y are leading further work to mitigate the<br />
risks, maximise the savings opportunities <strong>and</strong> is aiming<br />
to deliver at least £20m CIPs.<br />
□ S&SIB ………………□ EPB…...…………..<br />
□ FINANCE ……………□ AUDIT ….……..….<br />
□ CLINICAL GOVERNANCE …………..…......<br />
□ CHARITABLE FUNDS ……………………….<br />
TRUST BOARD ………………………………<br />
□ REMUNERATION ……………………………<br />
□ OTHER ………………………(please specify)<br />
CATEGORY:<br />
□ NATIONAL TARGET □ CNST<br />
□ STANDARDS FOR BETTER HEALTH<br />
□ ASSURANCE FRAMEWORK<br />
□ TARGET FROM COMMISSIONERS<br />
CORPORATE OBJECTIVE To achieve financial<br />
security for the <strong>Trust</strong>, with reduced costs, improved<br />
productivity <strong>and</strong> collecting income due<br />
□ OTHER …………………….. (please specify)<br />
AUTHOR/PRESENTER:<br />
Alan Davies, Deputy Director of Finance / David<br />
Gilburt, Director of Finance<br />
DATE:<br />
• The <strong>Trust</strong> has significant risks to both income <strong>and</strong><br />
CIP delivery. With this level of risk our ability to<br />
deliver the £39.7m year-end control total must be in<br />
doubt.<br />
• We need Commissioners to fund the projected activity<br />
<strong>and</strong> the <strong>Trust</strong> has to deliver the CIP savings.<br />
• Discussions continue with the commissions <strong>and</strong> a<br />
detailed review of the forecast outturn will be<br />
completed <strong>and</strong> reported to the <strong>November</strong> Finance<br />
Committee<br />
2. FINANCIAL IMPLICATIONS/IMPACT ON CURRENT FORECAST:<br />
Set out under key issues<br />
3. ALTERNATIVES CONSIDERED/REASONS FOR REJECTION:<br />
1